Solicitors Regulation Authority pauses compliance officer rule changes

The Solicitors Regulation Authority (SRA) has announced a pause on proposed rule changes that would separate the roles of Compliance Officer for Legal Practice (COLP) and Compliance Officer for Finance and Administration (COFA) from individuals with unilateral decision-making responsibilities.

The proposed regulations, which had already received approval from the Legal Services Board, targeted firms with a turnover exceeding £600,000 or those holding more than £2 million in client money. The rules aimed to increase checks and balances to prevent consumer harm, but faced significant backlash from the legal profession, particularly from smaller and boutique firms.

Aileen Armstrong, the SRA’s executive director for policy and strategy, stated that the regulator is pausing to ‘take stock’ and will consult with stakeholders to develop more proportionate options. Mark Evans, president of the Law Society of England and Wales, welcomed the decision, noting that the pause demonstrates a willingness to listen to professional concerns.